Like anything, there is a process to follow in order to be successful and to make BIG BUCKS in real estate investing. The system I’m about to show you is my proven system that has worked over and over for me and for the many other people I’ve helped.
My desire to invest and be financially free led me to Tulsiani Investments. I was lucky to have Sunil’s knowledge and guidance at every step, which gave me confidence to overcome my FEAR for Real Estate Investing. Finally I made the decision to invest in my first property in Kitchener, which is below market value, positive cash flow, AAA location in downtown Kitchener, No property management, ROI of 30%. -Manmit Singh
Acquire Motivated/Distressed Property Vendors – There is a fantastic amount to know about this area. Please realize that it is the initial stage towards an abundance of wealth for you. All efficient buys are due to one person assessing the needs of another person. When you discover a motivated or troubled homeowner, you’ve found someone with a particular need that you can fill.
Find Good Deals – This goes hand-in-hand with finding motivated sellers. Just because the person is motivated does not mean it is a good deal. You need to analyze the property to ensure it is a money making venture for you. Make sure you know what you want to do with the property (we call it “an exit strategy”) and have a plan to move forward.
Sign a Contract with a Property Owner – Now here’s one of the most essential components of this process, and this is the phase that divides the truly effective individuals from the ones who are just “wannabes”: If you have a good deal within your grasp, don’t stop to think about it, get a contract signed with the property owner.
Consider this: if you want to be like everyone else, take your time and keep your distance. The drawback to this plan can mean losses of $20,000 – $50,000 or more for you. An outstanding property or deal is like a $100 bill resting on a well travelled sidewalk. Be the first to pick it up, before someone else decides to do the same.
This is very important and when I first drive this point to people who I mentor, they are taken aback or fear starts to creep into their mind. But, I want to make this point very clear: Unsuccessful people have to think, talk to their advisors, spouse, and friends, (you get the idea).
Those who have no real intention of being wealthy find other factors that make them hesitate. They end up not investing. Successful individuals, however, know to act instantly. When they find real estate that can possibly create wealth for them of 30 to hundred thousand dollars or more, they make an offer immediately with the proper paperwork and agreements in place.
“Think about it: If you have an offer in on a property with the following conditions:
- Conditional upon legal approval
- Conditional upon getting appropriate financing
- Conditional upon evaluation of the property
- Conditional upon your due diligence
(Note: Please receive proper legal advisement on all terminology used in your contracts)… then you have generally driven that property off the real estate market, no one else can have it. You have afforded yourself the time to assess everything properly, research the numbers and costs, get rental comparables for that area, etc. If the information does not look promising, you simply get out of the deal… period. The most important point here is to seek out and take advantage of money making opportunities or someone else will.”
Start Making BIG BUCKS – This is usually done in one of two ways. One way is to flip the property by buying it at a highly discounted price from a motivated seller and then selling it for a profit to a motivated buyer. This can be an attractive money-making solution in some situations; however, the best way that you can make BIG BUCKS and start earning real wealth for the long term is to buy properties that generate ongoing cash flow. In other words: Rental properties.
When a real estate deal is exceptional, sell it or rent it. Do it again – Do these same methods over and over and over again. The first real estate deal can be the most challenging. Gradually it get easier and you have abundant wealth.